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Buying and/or selling ITM spreads is pointless. :)

Perhaps you could post how to take advantage of volatility with credit spreads in this thread: LinkedIn Iron Condor Gone bad. I'm sure the OP could use some of your advice, he didn't do to well with High Volatility and Credit Spreads. :)

I used italic's around stopped out to indicate the OP can consider the trade to be stopped out at maximum loss. :)

I always consider the maximum risk to be your stop on option trades at time of entry. The OP has been stopped out - time to move on to the next trade. :)

LNKD's drop wasn't earnings related. I would consider it a black swan event. :)

Options is a TOP-DOWN process - you start at the underlying and base your option trades around your views of the future movement of the underlying. Your question is approaching options from the BOTTOM-UP - with the emphasis on the option greeks and the underlying being secondary. The answer to...

Options are too volatile for stops - they could go down to $1.00 and then back to $3.00 the next day, that happens all the time. A big advantage of options over futures is that you don't have to get stopped out of a trade only to see it rebound without you. I picked the 3 contracts at $1.70...

I think the MM's only have to provide a market for a certain amount of contracts, perhaps as low as 10 or something like that. If the demand his high then the can raise the price to cover the risk. :)

There was a recent class action lawsuit against the computer hardware manufacturers in Canada because they over-charged for the RAM going back 15 years or so. Anybody could put in a claim and no proof of purchase was required - I submitted a claim and received $20.00. :)

Yes ..... When the bid hits $1.35 the position will be closed. IMO .....Options are too volatile for stops. In the OPs case I would have gone with 3 contracts, no stops for a total risk of $510 versus 12 contracts with a stop at $1.35 and risk of $420. :)

Why do you think that's a bad fill? The ask was $1.85. IMO ......... Your stop limits will contribute to your downfall. :)

IMO ......... Credit Spreads offer very little value in low and high volatility. Buying options is the way to go. :)

IMO ....... You can't use stops on option trades. The initial risk should be the stop. Options are so volatile you could close a trade at a 50% loss only to see it rebound the next day. :)

Credit Spreads and Volatility don't mix. And the market is very volatile, including after earnings. :)

Such as an Option Debt Spread? You buy an OTM Debt Spread which goes ITM. To close the trade you have to buy back the short leg first, but all your funds are tied up in the long leg - so you have to call the broker to close it for you. :)

You are more neutral/bearish than neutral/bullish? :)

Trade #1 is $5.00 OTM, while trade #2 is only $2.00 OTM. But I have a question - shouldn't the put premium be higher than the call premium? :)

I have an idea. Earnings Options. Options that expire the day after earnings on a select group of stocks such as AAPL, GOOGL, MSFT, FB, TSLA, PCLN, AMZN, etc. I think they would be very popular. :)

IMO ...... micro-managing a trade is counterproductive. You have two choices: Keep the trade open. Close the trade at a profit or loss and move on to the next trade. :)

Options is a TOP-DOWN process. First you look at the underlying and determine the future trading pattern. Then you look at the option chain and select the expiry and strikes. If the bid/ask is acceptable you open the trade. Your views on the underlying (step #1) will determine the type of...